BANGLADESH UNIVERSITY OF PROFESSIONALS

Research Paper

Research Topic Name:

Influence of Product Quality and Product Information on Purchasing
Decision of E-commerce Consumers in Bangladesh

Course Name: Business Research Methodology

Course Code: BUS 8508

Submitted To:
Professor Dr. Shah Md Ahsan Habib
Bangladesh University of Professionals (BUP)

Submitted By:
Roll Name
18019033 Md. Tanjim Hossain

Date of Submission:
20 April, 2020
 Influence of Product Quality and Product Information on
Purchasing Decision of E-commerce Consumers in Bangladesh

Section One : Introduction

Background of the Study:
This is the age of technology and the growth of technology has significantly changed the people’s way
of shopping. The growth of technology has given birth to e-commerce business, as in recent years, this
potential sector of e-commerce has been experiencing a very good deal of changes in Bangladesh.
Online Shopping in Bangladesh has been witnessing a rapid growth and a further significant growth
is expected to come in the upcoming years. According to IDLC Monthly Business Review (2018)1, the
e-commerce market increased 70% in 2017 from 2016. The major industry drivers are rising internet
penetration, smartphone penetration; there are over 90 million internet users on September 2018 and
in 2017 smartphone penetration was 31%. There are about 100 active e-commerce company in
Bangladesh, along with over 10,000 Facebook-based e-commerce entrepreneurs, according to
LightCastle Analytics Wing (2019)2. Different companies are providing their online shopping service
in different categories: online marketplace (e.g. Daraz, AjkerDeal, Bikroy.com), online grocery (e.g.
Chaldal, Khaas Food), B2B (e.g. Sindabad.com), lifestyle shopping (e.g. Bagdoom, Othoba), local
artisan product (e.g. Dorpon), online electronic market (e.g. Pickaboo, Ryans) and many more. All
these platforms provide different products and services in multiple category, brands, quality and price.
A survey conducted by J. Suhan (2015)3 suggested that, many of the consumers prefer ecommerce
sites because online shopping saves time and it enables consumers to buy their desired products from
home.

According to IDLC Monthly Business Review (2018)1, over the past decade, global e-commerce has
been expanding at an average rate of 20% a year, whereas, the growth of e-commerce in our country
is only 0.7% and in 2017, the e-commerce market size was USD 110-115 million (around BDT 900
crore), whereas the total retail market was 133,571-crore. So, this is obvious that, a large number of
consumer groups are either not interested to buy or not satisfied with the product or services from the
e-commerce shops. Though multiple products in multiple categories are available at different online
stores, lack of trust is one of the many reasons for consumers’ not using online shopping, as many
consumers claim that many ecommerce companies are not maintaining the quality what is advertised
online, as specified by the LightCastle Analytics Wing (2019)2. According to E. K. Chowdhury & R.
Chowdhury (2017)4, many ecommerce platforms fail to provide 360-degree information on a product’s
features and quality. Uncertainty of product quality and insufficiency of product information are some
prime reasons that create customer dissatisfaction or disinterested to purchase product from online in
Bangladesh. This study tries to focus on relating customer satisfaction with product quality and product
information. Along with, it tries to identify how consumers’ purchasing decision can be motivated by
improving product quality and product related information.

Research Questions:
Based on above-mentioned statements, this study has been designed to answer five key questions:
1. Which products are being sold in ecommerce platform in Bangladesh?
2. What product related information are provided in the ecommerce websites in Bangladesh?
3. How satisfied are the customers with the product quality and product information from online
stores in Bangladesh?
4. How product quality can be upgraded to motivate consumers to purchase from ecommerce
websites?
5. How product related information can be enhanced to improve the ecommerce consumers’
purchasing decision?

Objectives of the Study:

According to the above research questions, following objectives of the study are mentioned here:
1. To identify the products that are sold in ecommerce platform in Bangladesh.
2. To analyze the product related information in ecommerce websites in Bangladesh.
3. To examine the satisfaction level of customers regarding the product quality and product
information of online stores in Bangladesh.
4. To determine the way of motivating online consumers in Bangladesh through upgrading product
quality.
5. To specify the means of improving ecommerce consumers’ purchasing decision in Bangladesh
by enhancing product related information.

Methodologies:
Firstly, to identify the products that are sold in ecommerce platform in Bangladesh, the data
requirements were types of products sold in specific website, categories of products, products sold in
each category, brand varieties etc. Literature review and analysis of different websites have been done
for data collection and analysis.
To analyze the product related information in ecommerce websites in Bangladesh, product categories,
product size, product shape, product weight, product color, product style, technical specifications,
product related video, price, availability, delivery duration, payment methods, convenience of
searching etc. data were required. Different websites were visited and multiple literature were
reviewed for this purpose.
To examine the satisfaction level of customers regarding the product quality and product information
of online stores in Bangladesh, data requirements were customers’ perception on product’s quality
from ecommerce websites, satisfaction level on received product’s quality, satisfaction level on
product’s related information and expectation of product quality and product information. Secondary
survey was collected and literatures were reviewed to meet the data requirements.
To determine the way of motivating online consumers in Bangladesh through upgrading product
quality, gap of product quality, inventory management, packaging, delivery methods, credibility,
implementation opportunities, challenges etc. information were necessary. Literatures were collected
and consulted for this purpose.
Finally, to specify the means of improving ecommerce consumers’ purchasing decision in Bangladesh
by enhancing product related information, required data were gap of product information, validity of
information, way of improvement, technical deficiency, financial challenges etc. of ecommerce
websites in Bangladesh. To meet this objective, proper literatures were collected and analyzed.

Organization of the Report:

First section is Introduction. It specifies the background of the study, research questions, research
objective, methodologies and organization of the report.
Second section is Conceptual and Literature Review. The report related conceptual issues have been
identified and related literatures have been analyzed in this section.
Third section is Products of Ecommerce Market in Bangladesh. This section describes what products
are being sold in ecommerce websites in Bangladesh. Product related information are also specified in
this section.
Fourth section is Customer Satisfaction of Ecommerce Products in Bangladesh. This section
identifies the current satisfaction level of ecommerce consumers regarding product quality and product
information.
Fifth section is Observation and Recommendation. This chapter recommends some way of improving
ecommerce platform and motivating consumers by upgrading product quality and enhancing product
information.

Section Two: Conceptual Framework and Literature Review

Amith Vikram (2012)5 defined e-commerce as anything that involves an online transaction. It refers to
the buying and selling of products or services over electronic medium such as internet and other
computer networks. Ecommerce transaction includes ordering online, online delivery of paid content,
financial transactions such as movement of money between bank accounts etc.

As described by The Financial Express (2020)6, ecommerce business in Bangladesh have been
increasing over the years. In Bangladesh the e-commerce industry began its operation in the late 90s.
The e-commerce industry in Bangladesh started evolving greatly from the year 2012. The market of
e-commerce is expected to grow to Tk 70 billion by 2021.

IDLC Monthly Business Review (2018)1 identified the major industry drivers like rising internet
penetration, smartphone penetration, preference of young population etc. for the growth of ecommerce
in Bangladesh. Internet subscriptions have been growing at a rate of 19.4% annually since 2012, and
there were over 90 million subscribers on September 2018. In 2017, smartphone penetration was at
31% in the country and is projected to grow to 75% by 2025, driven by declining prices making it
more accessible to the greater population. Currently 43% of the population is under the age of 25, who
are very much attached with the technology and a large portion of this population prefers e-commerce
as this platform is greatly connected with technology.

According to E. K. Chowdhury & R. Chowdhury (2017)4, it is not possible in physical market to

arrange the inventories of all the categories due to space and capital problems but if it is in the form of
online, company can offer huge choice of collections and customers can choose their product from
various available options. If products can be ordered at any convenient mode and time and the delivery
is received at the door step of the customers at desired time period, then customers feel more
comfortable to buy from online shops.

LightCastle Analytics Wing (2019)2 identified major issues affecting the e-commerce ecosystem which
are credibility and trust issues, deficiency in quality etc. There is complain of trust from the customers’
end that companies do not sell what they advertise online. Also, there is no efficient warehousing
system or formal modern inventory management systems in place for most of the ecommerce
platforms, which results in degradation of the quality.

According to Bhatnagar, Misra, & Rao (2000)7, lack of physical contact, uncertainty of product quality
and the distrust of retailers are the most common reasons for consumers’ dissatisfaction about online
marketplace.

According to J. Suhan (2015)3, people of a developing countries like Bangladesh are paranoid when it
comes to the quality of the product. The online shops have to ensure the quality of the product or
service they sell. Internet shoppers are less brand conscious and seek more convenience and
innovation. Customer satisfaction mostly depends on the quality of the products. Fundamental
objectives for shoppers should be maximization of the product quality.

Section Three: Products of Ecommerce Market in Bangladesh

According to LightCastle Analytics Wing (2019)2, different companies are providing their online
shopping service in different categories: online marketplace (e.g. Daraz, AjkerDeal, Bikroy.com),
online grocery (e.g. Chaldal, Khaas Food), B2B (e.g. Sindabad.com), lifestyle shopping (e.g.
Bagdoom, Othoba), local artisan product (e.g. Dorpon), online electronic market (e.g. Pickaboo,
Ryans) and many more.

Brain Station 23(2019)8 article has identified some of the top ecommerce websites operating in
Bangladesh, a few of which are mentioned here, along their product lines and product related
information. Rokomari.com9 is an online shop that sells books at very reasonable price The most
amazing part is that they have their own home delivery system in Dhaka, Chittagong, and Rangpur.
They provide cash on delivery, MasterCard, VISA card, Bkash, and DBBL as a payment system. Items
at Rokomari.com9 are categorized by publications, subject, authors etc. The website provides a
convenient way of searching products and showing detailed information likes book title, book author,
summary, review, price etc.

Daraz BD10 is one of the prominent online shopping sites with a wide selection of electronics, fashion
and home appliances. Currently, this is considered to be the number one online shopping website in
Bangladesh considering the popularity. They have different payment options like VISA card, Bkash
payment and cash on delivery. Daraz.com has convenient search option. It provides detailed
information like product title, category, technical specifications, customer rating, review, warranty,
return policy, price, offers etc. For some product they provide multiple images and zoom-in facility so
that consumers can have a better view of the item.

Pickaboo.com11 is another trending site for online shopping which sells electronic gadgets like mobile
phones, smart watches, tablets, computers etc. They provide brand warranty, 100% authentic products
at marked down prices. Additionally, they have a very easy return policy for any of their products.
Pickaboo.com provides detailed product information for each category. Detailed information is
provided along with technical specifications, videos, reviews, color, size, warranty etc. Items can be
searched using some easy filters like brands, price, color etc.

Chaldal.com12 sells grocery items which we need in our day to day life. Their main motto is to save
their customers valuable time. They sell Fast-moving Consumer Good (FMCG) like meat, fish,
vegetables, grains, bakery products, toiletries etc. Chaldal.com provides detailed information on
products like price, offers, delivery time, delivery rate, quantity, availability etc.

Bikroy.com13 is an e-commerce website where one can buy or sell anything new or used all over the
country. One can advertise his/her product in more than 50 different categories without any cost. Site
authority perceives all the advertisements to keep pace with the best quality. The details of the products
depend largely on the seller. Many of the cases the product descriptions are not properly provided and
images of the product are poor. This site is much popular for selling/buying used products in cheaper
price.

There are some other moderately popular ecommerce websites, like Bagdoom.com (sells lifestyle
products), Priyoshop.com (sells clothing, footwear, jewelry, accessories, electronics, appliance,
books, restaurants, health & beauty products etc.), ClickBd.com (sells electronics, cameras,
computers, phones, fashion accessories etc) and many others.

Section Four: Customer Satisfaction of Ecommerce Products in

Bangladesh

The survey done by J. Suhan (2015)3 identifies that people of Bangladesh still prefer traditional
shopping over online shopping. As an example, the size of Bangladesh’s e-grocery market is much
smaller - about 0.03%, of the country’s overall grocery market, as identified by IDLC Monthly
Business Review (2018)1. According to E. K. Chowdhury & R. Chowdhury (2017)4, many ecommerce
platforms fail to provide proper information on a product’s features and quality. Uncertainty of product
quality and insufficiency of product information are some prime reasons that create customer
dissatisfaction or disinterested to purchase product from online in Bangladesh.

According to Brain Station 23(2019)8, Some e-commerce sites have made a place at the top of the list
whereas some are failed to hold the grace. Some of the major reasons behind customer dissatisfactions
are:

Poor User Experience:

A modern e-commerce site must be secure, functional, have great search, adapt to mobile devices, and
load very quickly. Anything less is unacceptable.

Lack of information:

Proper information is essential part of any ecommerce website. Many websites fail to provide product
related proper information, descriptions, ratings, review etc.

Poor Product Photography:

Online shoppers cannot physically inspect the products they are buying, so they will need a strong
visual representation of those products to help them understand it, want it, and buy it. Many websites
fail to provide such 360-degree photograph or video to give buyers a proper feel about the product.

According to IDLC Monthly Business Review (2018)1, there are complaints from customers that
ecommerce websites do not sell what they advertise. There is still a huge trust issue from customers’
end that the products they receive do not match to the image viewed on the screen at the time of
purchase. Moreover, the supply chain for ecommerce is not strong yet for many companies. The
merchants do not have proper warehousing facility to store the products, usually no formal or
structured inventory management. Also, lack of logistic supports and inefficient packaging lead to low
quality of products.

According to J. Suhan (2015)3, people of a developing countries like Bangladesh are sensitive about
product quality. At the end of the day, customer satisfaction depends on the quality of the products.
Section Five: Observation and Recommendation
Product quality and product information plays a vital role in the ecommerce market. Different products
are sold in e-commerce market in Bangladesh. But lacking in some product quality and insufficiency
in product information create customer dissatisfaction in many cases. Buyers can be motivated to
purchase from online market place by enhancing quality and information. Following measures can be
taken:

Building Trust:
Online shops should take all measures to deliver the exact product which is being advertised.
According to J. Suhan (2015)3, building trust is the most challenging task for online business. The
quality, size, shape, color, price, availability etc should be transparent on the website and the delivered
product must maintain the advertised features. FMCG products must maintain proper expiry dates,
manufacture date etc.

Easy Return Policy:

Though many ecommerce websites in Bangladesh, provide return policy, in many cases the return
policy is not customer-friendly, and sometimes not available. As online customers cannot touch, feel
the products, sometimes the delivered products do not match their expectations. In such case, easy
return policy will motivate customers to purchase more from the ecommerce stores. According to J.
Suhan (2015)3, Bangladeshi online shops should adopt the return policy, otherwise a huge market will
phase out with tremendous potential.

Quality Control:

According to E. K. Chowdhury & R. Chowdhury (2017)4, quality control is an important motivating

factor for the shopper’s affirmative tendency towards online shopping. Every product should undergo
an inspection check after arriving at the company’s warehouse from the merchants, and only after
receiving a quality control seal the product may be allowed to be shipped to consumers. Nonetheless,
ecommerce companies should maintain proper packaging to maintain the quality of the product.
Though, many ecommerce companies do not have proper supply-chain system because of the budget
constraints, but still they should focus on proper inventory management, quality control and secured
delivery.
Versatile Product Information:

The depth of information in ecommerce websites should be increased, as most of the ecommerce sites
in Bangladesh have deficiency in it. Each product should give detailed information like size, quantity,
price, color, shape, offers, description etc. In many cases, the runtime information of the availability
of product is not given. If the inventory items’ availability is reflected on website, the customers feel
more convenience to purchase from such website. Moreover, there must be clear and multiple
photographs of the product. If possible, 360-degree video can be added for some special items. For
electronic goods, technical specifications must be clear and exact.

Ecommerce is a potential growing market in Bangladesh. If the e-commerce industry is to scale, it will
need to address delivering quality products to its end users. It will also need to build trust with
customers and provide versatile product related information for motivating online customers
purchasing behavior. If the local players do not take necessary measures, they may soon find
themselves in a highly competitive environment dominated by e-commerce giants like Alibaba,
Amazon, and Walmart. So, product quality and product information should be given high priority to
motivate the purchasing decision of e-commerce consumers in Bangladesh.

References

1. IDLC Monthly Business Review (2018). E-commerce of Bangladesh: Shaping the future of
shopping. (Available at: https://idlc.com/mbr/article.php?id=136)
2. LightCastle Analytics Wing (2019). Is e-commerce at the brink of scaling up? (Available at:
https://www.lightcastlebd.com/insights/2019/04/10/is-e-commerce-at-the-brink-of-scaling-
up)
3. Suhan. J. (2015). Acceptance of Online Shopping in Bangladesh: Consumer’s Perspective.
(Available at:
https://pdfs.semanticscholar.org/7b57/940f82a211c4b7b33892f63f22648e01f99b.pdf)
4. Emon Kalyan Chowdhury & Rupam Chowdhury (2017). Online shopping in Bangladesh: A
Study on the motivational factors for ecommerce that influence shopper’s affirmative
tendency towards online shopping. (Available at:
https://www.researchgate.net/publication/316919017_Online_shopping_in_bangladesh_a_stu
 dy_on_the_motivational_factors_for_ecommerce_that_influence_shopper's_affirmative_tend
ency_towards_online_shopping)
5. Mr. Amith Vikram MA (2012). E-commerce: Opportunities and Challenges. (Available at:
https://www.researchgate.net/publication/273455693_E-
commerce_Opportunities_and_Challenges_ISBN978-81910530-3-6)
6. The Financial Express (2020). E-commerce in Bangladesh: Where are we headed?
(Available at: https://thefinancialexpress.com.bd/views/views/e-commerce-in-bangladesh-
where-are-we-headed-1578666791)
7. Bhatnagar, Amit & Misra, Sanjog & Rao, Raghav. (2000). On Risk, Convenience, and
Internet Shopping Behavior. (Available at:
https://www.researchgate.net/publication/220420287_On_Risk_Convenience_and_Internet_
Shopping_Behavior)
8. Brain Station 23 (2019). Top e-Commerce Sites in Bangladesh According to Alexa.
(Available at: https://brainstation-23.com/top-e-commerce-sites-bangladesh-according-alexa)
9. https://www.rokomari.com/
10. https://www.daraz.com.bd/
11. https://www.pickaboo.com/
12. https://www.chaldal.com/
13. https://www.bikroy.com/